How To Predict Which Stocks Will Get Acquired for a 100% Premium in One Day

7/16/2014

Online Real Estate broker, ZipRealty, was acquired for a 122% premium today by Realogy, a real estate brokerage conglomerate. ZipRealty happens to be owned by two of the top small cap activist hedge funds in the world, Osmium Partners and Cannell Capital.

These two hedge funds own a combined 30% of Zip Realty and have been pushing for a change, including the option of a sale. With that, it was no surprise to us at Billionairesportfolio.com to see $ZIPR acquired for more than a 100% premium in one day.

In our premium research service, The Billionaires Portfolio, we own a stock in our portfolio that is controlled by the same small cap activist hedge fund Osmium Partners — the same investor that helped influence a 120% premium in ZipRealty.

Osmium owns almost 15% of the stock in our Billionaire’s Portfolio and in this case too, they are pushing for a sale of the company. We think this stock could be another Ziprealty, with the potential for a big take-out premium.